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by a draw from an Ellsberg urn. In a within-subject experiment, subjects make decisions in three different bargaining …
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Auctions often involve goods exhibiting a common knowledge ex-post risk. Precautionary bidding predicts that under … expected utility, ex-post risk leads DARA bidders to reduce their bids by more than the appropriate risk premium. Because the … degree of riskiness of the good, and bidders risk aversion, are difficult to observe in field settings, we conduct …
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